Income Tax Act 2007 section 257FR

Relief subsequently found not to have been due

Section 257FR deals with the withdrawal of Seed Enterprise Investment Scheme (SEIS) income tax relief where it is later found that the relief should not have been given, and sets out the procedural safeguards that must be met before withdrawal can occur on certain grounds.

• Any SEIS relief that is later found not to have been due must be withdrawn from the investor.
• Relief cannot be withdrawn on the grounds that the purpose-of-issue or spending requirements were not met, or that the company was not a qualifying company, unless certain procedural conditions are satisfied first.
• Those procedural conditions require either that the issuing company has itself notified HMRC of the problem, or that an HMRC officer has formally notified the company of the officer's opinion that relief was not due.
• The relevant issue of shares means the entire issue of shares by the company that includes the investor's particular shares.